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The Tax Advantage of Multifamily Real Estate

Updated: May 22, 2023

Gaining the most returns is the ultimate goal for investors. To achieve this, investors must combine good yields with tax efficiency strategies to ensure they get their investment’s full worth.

This is especially true for new investors who are just now starting to build wealth.

Tax breaks can spell the difference between one and multiple investments. Money that is saved can easily be put towards the next property investment, your bank savings, or emergency funds. Savings do make a difference and that’s why most professionals in finance encourage both big and small market players to explore tax advantages.

Interested in finding investments with great tax advantages? Continue reading...

One key market that enjoys a number of tax breaks is real estate. Investors enjoy some relief as they own properties and help keep the economy robust. Depending on the investment vehicle, investors can enjoy deferred taxes and fewer dues.

An example would be Multifamily Real Estate, which gives passive investors the dual advantage of reliable returns and tax efficiency. Property, income, and expenses from these investments are usually put through an LLC (limited liability company) which reduces individual tax liability.

Investors in Multifamily Real Estate also gain the advantage of deferred taxes. The specialized transaction called “1031 exchange” allows investors to defer Capital Gains Tax when proceeds from the first transaction are reinvested in a similar investment (“like-kind exchanges”).

These are just samples of strategies that allow for maximum returns on your investments. The key to unlocking available (all legitimate strategies) is finding the right partners who can leverage and help your investment grow with these available options. Partner with a trusted and accredited investor. Reach out to our team at Makaan Investment Group for the latest real estate investment opportunities.

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